Section 1 Public Community/Junior Colleges Summary of Recommendations - House Page: III-186 Method of Financing 2012-13 Base 2014-15 Recommended Daniel Estrada, LBB Analyst Biennial Change % Change General Revenue Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%) GR Dedicated Funds $0 $0 $0 % Total GR-Related Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%) RECOMMENDED FUNDING BY METHOD OF FINANCING Federal Funds $0 $0 $0 % Other $0 $0 $0 % All Funds $1,749,380,723 $1,645,081,171 ($104,299,552) (6.0%) General Revenue Funds 10% The bill pattern for the Public Community/Junior Colleges (2014-15 Recommended) represents an estimated 21% of the community college's estimated total available funds for the 2014-15 biennium. Agency 704 2/7/2013
Section 1 Public Community/Junior Colleges 2014-2015 BIENNIUM TOTAL= $1,645.1 MILLION IN MILLIONS APPROPRIATED $929.6 ALL FUNDS APPROPRIATED $929.6 GENERAL REVENUE AND GENERAL REVENUE-DEDICATED FUNDS FULL-TIME-EQUIVALENT POSITIONS APPROPRIATED $874.7 APPROPRIATED $874.7 APPROPRIATED $874.7 APPROPRIATED $874.7 REQUESTED $828.1 REQUESTED $828.1 REQUESTED $828.1 REQUESTED $828.1 $853.5 EXPENDED $874.7 ESTIMATED $874.7 BUDGETED $822.5 RECOMMENDED $822.5 RECOMMENDED $853.5 EXPENDED $874.7 ESTIMATED $874.7 BUDGETED $822.5 RECOMMENDED $822.5 RECOMMENDED APPROPRIATED EXPENDED APPROPRIATED ESTIMATED APPROPRIATED BUDGETED REQUESTED RECOMMENDED REQUESTED RECOMMENDED 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Agency 704 2/7/2013
Section 2 Public Community/Junior Colleges Summary of Recommendations - House, By Method of Finance -- General Revenue Fund 01 2012-13 Base 2014-15 Recommended Biennial Change % Change Comments Formula Recommendations $ 1,709,700,034 $ 1,627,264,509 $ (82,435,525) (4.8%) Recommendations include maintaining the 2012-13 average formula rate per contact hour. See Selected Fiscal and Policy Issues. Texas Southmost College $22,477,955 $ 15,987,530 (6,490,425) (28.9%) Recommendations include establishing a Trusteed Account at the Higher Education Coordinating Board for Texas Southmost College formula. See Selected Fiscal and Policy Issues. Small Institution Supplement Recommendations 4,500,000 $ 4,500,000 - % Recommendations include maintaining the Small Institution Supplement methodology. Nine Public Community/Junior Colleges meet the criteria to receive an additional $500,000 each for the biennium. Bachelor of Applied Technology Recommendations 929,958 $ 1,382,406 452,448 48.7% Recommendations include funding the Bachelor of Applied Technology programs at three Public Community/Junior Colleges at the same Instruction & Operations Support General Revenue Rate as General Academic Institutions. Special Item Recommendations 11,772,776 $ 11,934,256 161,480 1.4% See below for detail on Special Items. Grand Total, All Contributions: $ 1,749,380,723 $ 1,661,068,701 $ (88,312,022) -5.0% Special Item Detail 2012-13 Base 2014-15 Recommended Biennial Change % Change Virtual College of Texas (Austin Community College) $ 712,500 $ 712,500 $ - % Maintain at 2012-13 base level. Star of the Republic Museum (Blinn College) $ 507,654 $ 507,654 $ - % Maintain at 2012-13 base level. Small Business Development Center (Dallas CCD) $ 3,303,808 $ 3,303,808 $ - % Maintain at 2012-13 base level. STARLINK (Dallas CCD) $ 400,188 $ 561,668 $ 161,480 40.4% Increase funding over the 2012-13 base. Heritage Museum (Hill College) $ 513,000 $ 513,000 $ - % Maintain at 2012-13 base level. Southwest Collegiate Institute for the Deaf (Howard College) $ 5,302,586 $ 5,302,586 $ - % Maintain at 2012-13 base level. Import/Export Training Center (Laredo College) $ 322,390 $ 322,390 $ - % Maintain at 2012-13 base level. American Airpower Heritage Museum (Midland College) $ 710,650 $ 710,650 $ - % Maintain at 2012-13 base level. Total, All Special Items: $ 11,772,776 $ 11,934,256 $ 161,480 1.4% Sec2_Agency 704 A.xlsx 2/7/2013
Section 3 Public Community/Junior Colleges Selected Fiscal and Policy Issues 1. Maintain 2012-13 Formula Methodology. The recommendations include funding the Public Community/Junior Colleges (Community Colleges) under the same funding methodology the used for the 2012-13 biennium. The recommendations include funding 100 percent of the formula through the allocation of contact hours, excluding funding for the small institution supplement. 2. Contact Hour Decrease and Rate. The recommendations include funding the Community Colleges at the 2012-13 average base rate per contact hour of approximately $5.54. The total number of contact hours decreased by 5.1 percent for the 2014-15 base period from 2012-13 for the Community College districts included in the formula funding recommendations, which results in an $88,925,950 decrease in General Revenue. 3. Texas Southmost College. The recommendations include $15,987,530 in General Revenue for Texas Southmost College based on the number of contact hours it generated in the base period. The recommendations also trustee its formula funding at the Higher Education Coordinating Board and then reallocate its funding based on updated contact hour data in the Fall of 2013. See Texas Southmost College Selected Fiscal and Policy Issue section. 4. Bachelor of Applied Technology. The recommendations include funding the Bachelor of Applied Technology (BAT) programs offered at Brazosport College, Midland College, and South Texas College at the same General Academic Institutions Instruction & Operations Support General Revenue rate which is $38 per fiscal year for the 2014-15 biennium. With a 19.4 percent increase in semester credits hours for the BAT program, the funding increased by $452,448 in General Revenue to $1,382,406 in 2014-15. 5. Small Institution Supplement. The recommendations include funding the Small Institution Supplement (SIS) using the same methodology used for 2012-13. Recommendations include $500,000 per eligible district for the 2014-15 biennium. There are a total of nine districts that meet the criteria to receive the SIS. Wharton County Junior College is no longer eligible and Alvin Community College is now eligible to receive the supplement for the 2014-15 biennium. 6. Report on System Administration. Information purposes only and not included in the recommendations. Rider 53, System Administration for Community Colleges, in the Higher Education Coordinating Board s (Board) bill pattern directed the Board to work with a consultant to develop a blueprint that establishes a state system administration for public community colleges. The National Center for Higher Education Management Systems (NCHEMS) was selected to assist the Board with this review. NCHEMS completed the report in June 2012 with the following recommendations: 1. Organize the functions of a state system of administration for community colleges within the framework of the Board; and, 2. Establish an interim independent Texas Community College and Workforce Policy Center ( Center ). The Center would be an interim independent agency with a defined lifespan until the functions of the Board are aligned in a manner that demonstrates a clear, consistent and deliberate understanding and commitment to the community college mission. 7. Outcomes Based Formula. Funding for the Higher Educating Coordinating Board s Outcomes based formula is not incorporated. Sec 3a Agency 704.docx 2/7/2013
Section 3 8. Formula Funding for University of Texas at Brownsville (UTB) and Texas Southmost College (TSC). The base period used for the Instruction and Operations (I&O) Formula for UTB and for the Instruction and Administration (I&A) Formula for TSC consists of semester credit hours (SCHs) and contact hours (CHs), respectively, for Summer 2012, Fall 2012, and Spring 2013. During the base period, the allocation for lower level undergraduate courses between the two institutions will be distributed based on a virtual enrollment. Both UTB and TSC agree that this allocation of SCHs and CHs might not accurately reflect what the actual enrollment of students will be when institutions are separate. To ensure an accurate allocation of funding for lower level undergraduate hours in fiscal years 2014-15, the LBB proposes to trustee funding for the lower level undergraduate hours at the Higher Education Coordinating Board (THECB) to then be reallocated to the two institutions after data is updated in fall of 2013 via the following mechanisms: 1. Funding amounts for lower level undergraduate SCHs and CHs will be calculated using final I&O and I&A rates. Recommendations provide $16 million in General Revenue for TSC s contact hours within Strategy F.1.5 at THECB. Within each institution s bill patterns: a. UTB will continue to receive funding for SCHs relating to upper level undergraduate, master s, doctoral, and special programs, as well as funding provided by the Legislature for Infrastructure, Special Items, and Research. 2. The rider in THECB s bill pattern makes the trusteed funding for the lower level undergraduate SCHs and CHs contingent in 2014-15 upon the following factors: a. UTB and TSC providing information in Fall 2013 on actual student distribution between the separate institutions and the LBB re-calculating the distribution of funding between the two institutions with updated base period data. b. LBB staff requesting approval regarding the new distribution of these funds. The request is considered approved if not disapproved within fifteen days after the date that staff provides the recommendation. c. After approval, the LBB directing THECB to release the funding to the institutions according to the new allocation. 3. The rider also maintains that if the new funding allocation is less than amounts appropriated in this strategy, the remainder will lapse to the credit of the General Revenue Fund. If the new funding allocation is more than funds appropriated in this strategy, both institutions amounts will be prorated so that it may not exceed available funding. Sec 3a Agency 704.docx 2/7/2013
Section 3 The University of Texas at Brownsville (UTB) and Texas Southmost College (TSC) Selected Policy Overview Background: Since June 1991, Texas Southmost College (TSC) and The University of Texas at Brownsville (UTB) have partnered as one institution known as UTB-TSC. The partnership dedicated most of TSC s tax revenues and facilities to UTB-TSC and required UTB to provide academic and support services, including management of most faculty and staff. During 2010-2011, the two institutions agreed to end the partnership and the 82nd Legislature passed SB 1909, which directed both TSC and UTB to separate the partnership by August 31, 2015 unless required for accreditation. The current status of the separation is: The institutions have established a virtual enrollment beginning in summer of 2012. Virtual enrollment means that students self identify which institution they would like to attend. The institutions are targeting complete operational separation by fall of fiscal year 2014. Students will be enrolled at a specific institution based on the two separate schools offering different degree programs, enrollment standards and tuition rates, and having separate enrollment processes. Each institution must achieve separate accreditation by fall of 2015. Issue #1: Formula Funding. The base period used for the Instruction and Operations (I&O) Formula for UTB and for the Instruction and Administration (I&A) Formula for TSC consists of semester credit hours (SCHs) and contact hours (CHs), respectively, for Summer 2012, Fall 2012, and Spring 2013. During the base period, the allocation for lower level undergraduate courses between the two institutions will be distributed based on the virtual enrollment. Both UTB and TSC agree that this allocation of SCHs and CHs might not accurately reflect what the actual enrollment of these students will be when institutions are separate. LBB Proposal: To ensure an accurate allocation of funding for lower level undergraduate hours in fiscal years 2014-15, the LBB proposes to trustee funding for the lower level undergraduate hours at the Coordinating Board to then be re-allocated to the two institutions after data is updated in fall of 2013. Issue #2. Higher Education Group Insurance (HEGI) Funding. HEGI funding is allocated to institutions based on enrollment in the group insurance plan as of December 1, 2012. Currently, almost all of the employees at UTB-TSC work for UTB and are contracted to TSC as needed. UTB is implementing a reduction in force for fiscal year 2013 and it is possible that TSC will increase their workforce. In the past, HEGI has funded these contract employees at the JUCO rates, but provided the contributions to the University of Texas (UT) System on these employees behalf for their enrollment in UT System s group insurance plan. TSC belongs to the Employees Retirement System (ERS) Group Benefits Program (GBP) and any new employees will be enrolled at ERS. LBB Proposal: To provide HEGI appropriations based on actual workforce levels in fiscal years 2014-15, LBB proposes to withhold HEGI contributions for the two institutions to UT System and ERS until institutions submit new enrollment levels as of December 1, 2013, when a re-allocation between the two will be calculated. Informational: Benefits Issues for Employees Subject to a Reduction in Force. Employees that are part of UTB s reduction in force that are then rehired by TSC may face the below issues with their benefits. These issues can be remedied in statute for the affected employees. Retirement: Individuals enrolled in the Teachers Retirement System or Optional Retirement Program that remove their retirement contributions will be subject to a ninety-day delay if they are rehired by TSC. Insurance: Individuals who do not utilize COBRA or are not within the UT system group insurance plan at the time of rehire by TSC will be subject to a ninety-day delay in insurance coverage at ERS. Retiree Health Insurance: Employees are normally required to be enrolled in the same insurance plan for ten years to be eligible for employer contributions towards insurance premiums upon retirement. Some employees may be affected if they meet requirements for retirement, but do not have the full ten years of service at either UT System or under an ERS institution. However, affected employees with a combined ten years of service would be eligible for TRS-Care. 2/7/2013
Section 3 Community College District Financial Condition Selected Policy Overview Financial Condition. Rider 14 in the Public Community/Junior Colleges bill pattern in the 2012-13 General Appropriations Act, Eighty-second Legislature, directs the Higher Education Coordinating Board (Board) to submit an annual report about the financial condition of the state s community colleges. This rider implements a recommendation in the 2011 Government Effectiveness and Efficiency Report, Strengthen Financial Oversight of Community Colleges. The analysis provided by the Board in May 2012 is a broad financial evaluation of the state s public community college districts based on one year of financial data. Other key performance indicators such as enrollment, audit findings, and accreditation status were taken into account to gain a more robust and complete understanding of institutional strength. Ratios referenced in the Board s report are commonly used by external entities to measure the health of higher education institutions. A composite financial index (CFI) was calculated by the Board to provide one metric to more efficiently analyze the financial health of all the districts. Other ratios used in the Board analysis include an equity ratio, debt burden ratio, leverage ratio, as well as enrollment figures and other non-quantitative factors. Based on the data analyzed, institutions were designated as satisfactory, in need of monitoring, or unsatisfactory. Using industry practice and historical data, benchmarks for financial health were established. Based on fiscal year 2011 Annual Financial Report data, the Board s analysis found that twelve of the 50 districts did not meet thresholds for three or more of the Board s 12 financial indicators. Those districts had questionable fluctuations in their long-term liabilities, debt burden, enrollment, audit findings, and accreditation status. Fifteen districts did not meet the threshold for two or fewer indicators. The remaining twenty-three districts met the threshold for all indicators. Those districts were considered robustly capitalized with positive net asset balances and strong internal controls. 2/7/2013
Section 3a 2012-13 Base Summary 2012-13 General Revenue Base Public Community/Junior College Formula Small Inst. Supp. Special Items B.A.T. Total 1 Alamo Community College $ 129,240,643 $ - $ - $ - $ 129,240,643 2 Alvin Community College $ 14,318,460 $ - $ - $ - $ 14,318,460 3 Amarillo College $ 30,418,247 $ - $ - $ - $ 30,418,247 4 Angelina College $ 15,048,551 $ - $ - $ - $ 15,048,551 5 Austin Community College $ 90,715,064 $ - $ 712,500 $ - $ 91,427,564 6 Blinn College $ 42,028,063 $ - $ 507,654 $ - $ 42,535,717 7 Brazosport College $ 9,631,108 $ - $ - $ 125,083 $ 9,756,191 8 Central Texas College $ 39,342,630 $ - $ - $ - $ 39,342,630 9 Cisco Junior College $ 10,757,962 $ - $ - $ - $ 10,757,962 10 Clarendon College $ 4,399,324 $ 500,000 $ - $ - $ 4,899,324 11 Coastal Bend College $ 12,332,959 $ 500,000 $ - $ - $ 12,832,959 12 College of the Mainland $ 11,852,634 $ - $ - $ - $ 11,852,634 13 Collin County Community College $ 61,297,934 $ - $ - $ - $ 61,297,934 14 Dallas County College $ 178,760,764 $ - $ 3,703,996 $ - $ 182,464,760 15 Del Mar College $ 32,642,135 $ - $ - $ - $ 32,642,135 16 El Paso Community College $ 63,617,200 $ - $ - $ - $ 63,617,200 17 Frank Phillips College $ 3,578,024 $ 500,000 $ - $ - $ 4,078,024 18 Galveston College $ 6,507,766 $ - $ - $ - $ 6,507,766 19 Grayson County College $ 15,074,682 $ - $ - $ - $ 15,074,682 20 Hill College $ 13,213,076 $ - $ 513,000 $ - $ 13,726,076 21 Houston College $ 140,246,045 $ - $ - $ - $ 140,246,045 22 Howard College $ 14,720,356 $ 500,000 $ 5,302,586 $ - $ 20,522,942 23 Kilgore College $ 21,955,033 $ - $ - $ - $ 21,955,033 24 Laredo Community College $ 21,585,868 $ - $ 322,390 $ - $ 21,908,258 25 Lee College $ 18,018,480 $ - $ - $ - $ 18,018,480 26 Lone Star College $ 129,758,007 $ - $ - $ - $ 129,758,007 27 McLennan College $ 27,566,939 $ - $ - $ - $ 27,566,939 28 Midland College $ 16,638,077 $ - $ 710,650 $ 94,344 $ 17,443,071 29 Navarro College $ 31,501,650 $ - $ - $ - $ 31,501,650 30 North Central Texas College $ 19,671,661 $ - $ - $ - $ 19,671,661 31 Northeast Texas Community College $ 8,772,097 $ - $ - $ - $ 8,772,097 32 Odessa College $ 13,751,587 $ - $ - $ - $ 13,751,587 33 Panola College $ 7,104,375 $ - $ - $ - $ 7,104,375 34 Paris Junior College $ 17,818,694 $ - $ - $ - $ 17,818,694 35 Ranger Junior College $ 4,456,975 $ 500,000 $ - $ - $ 4,956,975 36 San Jacinto College $ 73,037,114 $ - $ - $ - $ 73,037,114 37 South Plains College $ 27,026,596 $ - $ - $ - $ 27,026,596 38 South Texas Community College $ 65,337,620 $ - $ - $ 710,531 $ 66,048,151 39 Southwest Texas College $ 13,727,030 $ - $ - $ - $ 13,727,030 40 Tarrant County $ 104,951,385 $ - $ - $ - $ 104,951,385 41 Temple Junior College $ 15,125,329 $ 500,000 $ - $ - $ 15,625,329 42 Texarkana College $ 14,926,197 $ - $ - $ - $ 14,926,197 43 Texas Southmost College $ 22,477,955 $ - $ - $ - $ 22,477,955 44 Trinity Valley College $ 21,972,396 $ - $ - $ - $ 21,972,396 45 Tyler Junior College $ 33,953,034 $ - $ - $ - $ 33,953,034 46 Vernon College $ 10,877,375 $ 500,000 $ - $ - $ 11,377,375 47 Victoria College $ 11,848,156 $ - $ - $ - $ 11,848,156 48 Weatherford College $ 15,330,190 $ - $ - $ - $ 15,330,190 49 Western Texas College $ 6,645,083 $ 500,000 $ - $ - $ 7,145,083 50 Wharton College $ 16,599,458 $ 500,000 $ - $ - $ 17,099,458 Total $ 1,732,177,989 $ 4,500,000 $ 11,772,776 $ 929,958 $ 1,749,380,723 LBB Document 2/7/2013
Section 3b 2014-15 Recommendations Summary Compared to 2012-13 2012-13 Base 2014-15 General Revenue Recommendations Biennial Change Public Community/Junior College Total 2012-13 Formula Small Inst. Supp. Special Items B.A.T. Total 2014-15 Difference Percent 1 Alamo Community College $ 129,240,643 $ 118,227,417 $ - $ - $ - $ 118,227,417 $ (11,013,226) -8.52% 2 Alvin Community College $ 14,318,460 $ 13,345,083 $ 500,000 $ - $ - $ 13,845,083 $ (473,377) -3.31% 3 Amarillo College $ 30,418,247 $ 28,590,962 $ - $ - $ - $ 28,590,962 $ (1,827,285) -6.01% 4 Angelina College $ 15,048,551 $ 13,662,467 $ - $ - $ - $ 13,662,467 $ (1,386,084) -9.21% 5 Austin Community College $ 91,427,564 $ 85,974,404 $ - $ 712,500 $ - $ 86,686,904 $ (4,740,660) -5.19% 6 Blinn College $ 42,535,717 $ 41,632,966 $ - $ 507,654 $ - $ 42,140,620 $ (395,097) -0.93% 7 Brazosport College $ 9,756,191 $ 8,936,248 $ - $ - $ 183,742 $ 9,119,990 $ (636,201) -6.52% 8 Central Texas College $ 39,342,630 $ 37,943,510 $ - $ - $ - $ 37,943,510 $ (1,399,120) -3.56% 9 Cisco Junior College $ 10,757,962 $ 9,380,304 $ - $ - $ - $ 9,380,304 $ (1,377,658) -12.81% 10 Clarendon College $ 4,899,324 $ 3,868,805 $ 500,000 $ - $ - $ 4,368,805 $ (530,519) -10.83% 11 Coastal Bend College $ 12,832,959 $ 11,294,669 $ 500,000 $ - $ - $ 11,794,669 $ (1,038,290) -8.09% 12 College of the Mainland $ 11,852,634 $ 10,703,303 $ - $ - $ - $ 10,703,303 $ (1,149,331) -9.70% 13 Collin County Community College $ 61,297,934 $ 61,158,598 $ - $ - $ - $ 61,158,598 $ (139,336) -0.23% 14 Dallas County College $ 182,464,760 $ 168,109,315 $ - $ 3,865,476 $ - $ 171,974,791 $ (10,489,969) -5.75% 15 Del Mar College $ 32,642,135 $ 29,420,901 $ - $ - $ - $ 29,420,901 $ (3,221,234) -9.87% 16 El Paso Community College $ 63,617,200 $ 62,427,146 $ - $ - $ - $ 62,427,146 $ (1,190,054) -1.87% 17 Frank Phillips College $ 4,078,024 $ 3,295,382 $ 500,000 $ - $ - $ 3,795,382 $ (282,642) -6.93% 18 Galveston College $ 6,507,766 $ 6,095,529 $ - $ - $ - $ 6,095,529 $ (412,237) -6.33% 19 Grayson County College $ 15,074,682 $ 13,647,144 $ - $ - $ - $ 13,647,144 $ (1,427,538) -9.47% 20 Hill College $ 13,726,076 $ 12,509,470 $ - $ 513,000 $ - $ 13,022,470 $ (703,606) -5.13% 21 Houston College $ 140,246,045 $ 132,964,259 $ - $ - $ - $ 132,964,259 $ (7,281,786) -5.19% 22 Howard College $ 20,522,942 $ 12,627,283 $ 500,000 $ 5,302,586 $ - $ 18,429,869 $ (2,093,073) -10.20% 23 Kilgore College $ 21,955,033 $ 19,635,840 $ - $ - $ - $ 19,635,840 $ (2,319,193) -10.56% 24 Laredo Community College $ 21,908,258 $ 19,934,068 $ - $ 322,390 $ - $ 20,256,458 $ (1,651,800) -7.54% 25 Lee College $ 18,018,480 $ 15,940,572 $ - $ - $ - $ 15,940,572 $ (2,077,908) -11.53% LBB Document 2/7/2013
2012-13 Base 2014-15 General Revenue Recommendations Biennial Change Public Community/Junior College Total 2012-13 Formula Small Inst. Supp. Special Items B.A.T. Total 2014-15 Difference Percent 26 Lone Star College $ 129,758,007 $ 134,971,688 $ - $ - $ - $ 134,971,688 $ 5,213,681 4.02% 27 McLennan College $ 27,566,939 $ 25,308,405 $ - $ - $ - $ 25,308,405 $ (2,258,534) -8.19% 28 Midland College $ 17,443,071 $ 15,195,061 $ - $ 710,650 $ 173,062 $ 16,078,773 $ (1,364,298) -7.82% 29 Navarro College $ 31,501,650 $ 29,950,877 $ - $ - $ - $ 29,950,877 $ (1,550,773) -4.92% 30 North Central Texas College $ 19,671,661 $ 20,013,283 $ - $ - $ - $ 20,013,283 $ 341,622 1.74% 31 Northeast Texas Community College $ 8,772,097 $ 8,453,101 $ - $ - $ - $ 8,453,101 $ (318,996) -3.64% 32 Odessa College $ 13,751,587 $ 13,173,423 $ - $ - $ - $ 13,173,423 $ (578,164) -4.20% 33 Panola College $ 7,104,375 $ 7,184,150 $ - $ - $ - $ 7,184,150 $ 79,775 1.12% 34 Paris Junior College $ 17,818,694 $ 16,060,997 $ - $ - $ - $ 16,060,997 $ (1,757,697) -9.86% 35 Ranger Junior College $ 4,956,975 $ 5,229,496 $ 500,000 $ - $ - $ 5,729,496 $ 772,521 15.58% 36 San Jacinto College $ 73,037,114 $ 70,241,835 $ - $ - $ - $ 70,241,835 $ (2,795,279) -3.83% 37 South Plains College $ 27,026,596 $ 24,764,988 $ - $ - $ - $ 24,764,988 $ (2,261,608) -8.37% 38 South Texas Community College $ 66,048,151 $ 63,669,968 $ - $ - $ 1,025,602 $ 64,695,570 $ (1,352,581) -2.05% 39 Southwest Texas College $ 13,727,030 $ 12,538,273 $ - $ - $ - $ 12,538,273 $ (1,188,757) -8.66% 40 Tarrant County $ 104,951,385 $ 103,151,745 $ - $ - $ - $ 103,151,745 $ (1,799,640) -1.71% 41 Temple Junior College $ 15,625,329 $ 14,030,682 $ 500,000 $ - $ - $ 14,530,682 $ (1,094,647) -7.01% 42 Texarkana College $ 14,926,197 $ 12,595,818 $ - $ - $ - $ 12,595,818 $ (2,330,379) -15.61% 44 Trinity Valley College $ 21,972,396 $ 20,666,013 $ - $ - $ - $ 20,666,013 $ (1,306,383) -5.95% 45 Tyler Junior College $ 33,953,034 $ 31,016,824 $ - $ - $ - $ 31,016,824 $ (2,936,210) -8.65% 46 Vernon College $ 11,377,375 $ 9,544,900 $ 500,000 $ - $ - $ 10,044,900 $ (1,332,475) -11.71% 47 Victoria College $ 11,848,156 $ 10,839,394 $ - $ - $ - $ 10,839,394 $ (1,008,762) -8.51% 48 Weatherford College $ 15,330,190 $ 14,639,167 $ - $ - $ - $ 14,639,167 $ (691,023) -4.51% 49 Western Texas College $ 7,145,083 $ 6,464,848 $ 500,000 $ - $ - $ 6,964,848 $ (180,235) -2.52% 50 Wharton College $ 17,099,458 $ 16,233,928 $ - $ - $ - $ 16,233,928 $ (865,530) -5.06% Total $ 1,726,902,768 $ 1,627,264,509 $ 4,500,000 $ 11,934,256 $ 1,382,406 $ 1,645,081,171 $ (81,821,597) -4.74% 43 Texas Southmost College $ 22,477,955 $ 15,987,530 $ - $ - $ - $ 15,987,530 (6,490,425) -28.87% Grand Total $ 1,749,380,723 $ 1,643,252,039 $ 4,500,000 $ 11,934,256 $ 1,382,406 $ 1,661,068,701 $ (88,312,022) -5.05% LBB Document 2/7/2013
Section 3c 2014-15 Formula General Revenue Summary Compared to 2012-13 2012-13 Formula 2014-15 Formula Biennial Change Public Community/Junior College Difference Percent Change 1 Alamo Community College $ 129,240,643 $ 118,227,417 $ (11,013,226) -8.52% 2 Alvin Community College $ 14,318,460 $ 13,345,083 $ (973,377) -6.80% 3 Amarillo College $ 30,418,247 $ 28,590,962 $ (1,827,285) -6.01% 4 Angelina College $ 15,048,551 $ 13,662,467 $ (1,386,084) -9.21% 5 Austin Community College $ 90,715,064 $ 85,974,404 $ (4,740,660) -5.23% 6 Blinn College $ 42,028,063 $ 41,632,966 $ (395,097) -0.94% 7 Brazosport College $ 9,631,108 $ 8,936,248 $ (694,860) -7.21% 8 Central Texas College $ 39,342,630 $ 37,943,510 $ (1,399,120) -3.56% 9 Cisco Junior College $ 10,757,962 $ 9,380,304 $ (1,377,658) -12.81% 10 Clarendon College $ 4,399,324 $ 3,868,805 $ (530,519) -12.06% 11 Coastal Bend College $ 12,332,959 $ 11,294,669 $ (1,038,290) -8.42% 12 College of the Mainland $ 11,852,634 $ 10,703,303 $ (1,149,331) -9.70% 13 Collin County Community College $ 61,297,934 $ 61,158,598 $ (139,336) -0.23% 14 Dallas County College $ 178,760,764 $ 168,109,315 $ (10,651,449) -5.96% 15 Del Mar College $ 32,642,135 $ 29,420,901 $ (3,221,234) -9.87% 16 El Paso Community College $ 63,617,200 $ 62,427,146 $ (1,190,054) -1.87% 17 Frank Phillips College $ 3,578,024 $ 3,295,382 $ (282,642) -7.90% 18 Galveston College $ 6,507,766 $ 6,095,529 $ (412,237) -6.33% 19 Grayson County College $ 15,074,682 $ 13,647,144 $ (1,427,538) -9.47% 20 Hill College $ 13,213,076 $ 12,509,470 $ (703,606) -5.33% 21 Houston College $ 140,246,045 $ 132,964,259 $ (7,281,786) -5.19% 22 Howard College $ 14,720,356 $ 12,627,283 $ (2,093,073) -14.22% 23 Kilgore College $ 21,955,033 $ 19,635,840 $ (2,319,193) -10.56% 24 Laredo Community College $ 21,585,868 $ 19,934,068 $ (1,651,800) -7.65% 25 Lee College $ 18,018,480 $ 15,940,572 $ (2,077,908) -11.53% 26 Lone Star College $ 129,758,007 $ 134,971,688 $ 5,213,681 4.02% 27 McLennan College $ 27,566,939 $ 25,308,405 $ (2,258,534) -8.19% 28 Midland College $ 16,638,077 $ 15,195,061 $ (1,443,016) -8.67% 29 Navarro College $ 31,501,650 $ 29,950,877 $ (1,550,773) -4.92% 30 North Central Texas College $ 19,671,661 $ 20,013,283 $ 341,622 1.74% 31 Northeast Texas Community College $ 8,772,097 $ 8,453,101 $ (318,996) -3.64% 32 Odessa College $ 13,751,587 $ 13,173,423 $ (578,164) -4.20% 33 Panola College $ 7,104,375 $ 7,184,150 $ 79,775 1.12% 34 Paris Junior College $ 17,818,694 $ 16,060,997 $ (1,757,697) -9.86% 35 Ranger Junior College $ 4,456,975 $ 5,229,496 $ 772,521 17.33% 36 San Jacinto College $ 73,037,114 $ 70,241,835 $ (2,795,279) -3.83% 37 South Plains College $ 27,026,596 $ 24,764,988 $ (2,261,608) -8.37% 38 South Texas Community College $ 65,337,620 $ 63,669,968 $ (1,667,652) -2.55% 39 Southwest Texas College $ 13,727,030 $ 12,538,273 $ (1,188,757) -8.66% 40 Tarrant County $ 104,951,385 $ 103,151,745 $ (1,799,640) -1.71% 41 Temple Junior College $ 15,125,329 $ 14,030,682 $ (1,094,647) -7.24% 42 Texarkana College $ 14,926,197 $ 12,595,818 $ (2,330,379) -15.61% 44 Trinity Valley College $ 21,972,396 $ 20,666,013 $ (1,306,383) -5.95% 45 Tyler Junior College $ 33,953,034 $ 31,016,824 $ (2,936,210) -8.65% 46 Vernon College $ 10,877,375 $ 9,544,900 $ (1,332,475) -12.25% 47 Victoria College $ 11,848,156 $ 10,839,394 $ (1,008,762) -8.51% 48 Weatherford College $ 15,330,190 $ 14,639,167 $ (691,023) -4.51% 49 Western Texas College $ 6,645,083 $ 6,464,848 $ (180,235) -2.71% 50 Wharton College $ 16,599,458 $ 16,233,928 $ (365,530) -2.20% Total $ 1,709,700,034 $ 1,627,264,509 $ (82,435,525) -4.82% 43 Texas Southmost College $ 22,477,955 $ 15,987,530 $ (6,490,425) -28.87% Grand Total $ 1,732,177,989 $ 1,643,252,039 $ (88,925,950) -5.13% LBB Document 2/7/2013
Section 3d 2014-15 Contact Hours Compared to 2012-13 Public Community/Junior College 2012-13 2014-15 Difference Percent Change 1 Alamo Community College 24,065,719 21,504,667 (2,561,052) -10.64% 2 Alvin Community College 2,577,914 2,340,747 (237,167) -9.20% 3 Amarillo College 5,254,013 4,885,794 (368,219) -7.01% 4 Angelina College 2,702,772 2,371,614 (331,158) -12.25% 5 Austin Community College 16,567,470 15,750,948 (816,522) -4.93% 6 Blinn College 7,630,973 7,729,236 98,263 1.29% 7 Brazosport College 1,752,404 1,626,133 (126,271) -7.21% 8 Central Texas College 7,189,287 6,843,154 (346,133) -4.81% 9 Cisco Junior College 1,982,574 1,709,512 (273,062) -13.77% 10 Clarendon College 824,312 705,461 (118,851) -14.42% 11 Coastal Bend College 2,173,492 1,949,015 (224,477) -10.33% 12 College of the Mainland 2,152,680 1,923,974 (228,706) -10.62% 13 Collin County Community College 11,201,590 11,283,235 81,645 0.73% 14 Dallas County College 32,647,646 30,439,960 (2,207,686) -6.76% 15 Del Mar College 5,721,907 5,081,841 (640,066) -11.19% 16 El Paso Community College 11,408,846 11,420,746 11,900 0.10% 17 Frank Phillips College 659,650 595,998 (63,652) -9.65% 18 Galveston College 1,144,434 1,043,600 (100,834) -8.81% 19 Grayson County College 2,632,228 2,367,960 (264,268) -14% 20 Hill College 2,411,011 2,273,547 (137,464) -5.70% 21 Houston College 25,878,421 24,477,292 (1,401,129) -5.41% 22 Howard College 2,830,734 2,308,226 (522,508) -18.46% 23 Kilgore College 3,956,997 3,459,662 (497,335) -12.57% 24 Laredo Community College 3,890,531 3,572,675 (317,856) -8.17% 25 Lee College 3,260,749 2,789,227 (471,522) -14.46% 26 Lone Star College 23,008,350 24,624,482 1,616,132 7.02% 27 McLennan College 4,897,235 4,464,623 (432,612) -8.83% 28 Midland College 2,976,812 2,727,256 (249,556) -8.38% 29 Navarro College 5,656,907 5,401,732 (255,175) -4.51% 30 North Central Texas College 3,492,953 3,673,837 180,884 5.18% 31 Northeast Texas Community College 1,506,319 1,483,742 (22,577) -1.50% 32 Odessa College 2,388,996 2,304,583 (84,413) -3.53% 33 Panola College 1,148,661 1,242,568 93,907 8.18% 34 Paris Junior College 3,157,799 2,863,561 (294,238) -9.32% 35 Ranger Junior College 709,269 934,361 225,092 31.74% 36 San Jacinto College 12,785,723 12,496,502 (289,221) -2.26% 37 South Plains College 4,880,197 4,496,241 (383,956) -7.87% 38 South Texas Community College 11,426,939 11,395,173 (31,766) -0.28% 39 Southwest Texas College 2,681,899 2,297,994 (383,905) -14.31% 40 Tarrant County 19,091,020 18,946,052 (144,968) -0.76% 41 Temple Junior College 2,651,044 2,440,513 (210,531) -7.94% 42 Texarkana College 2,673,676 2,209,692 (463,984) -17.35% 44 Trinity Valley College 3,929,905 3,657,482 (272,423) -6.93% 45 Tyler Junior College 6,075,602 5,355,523 (720,079) -11.85% 46 Vernon College 1,941,584 1,630,121 (311,463) -16.04% 47 Victoria College 2,005,198 1,868,579 (136,619) -6.81% 48 Weatherford College 2,656,921 2,555,467 (101,454) -3.82% 49 Western Texas College 1,247,297 1,196,536 (50,761) -4.07% 50 Wharton College 2,968,349 2,925,435 (42,914) -1.45% Subtotal 308,477,009 293,646,279 (14,830,730) -4.81% 43 Texas Southmost College 4,051,450 2,837,703 (1,213,747) -29.96% Grand Total 312,528,459 296,483,982 (16,044,477) -5.13% Number of Districts Decreasing 42 Number of Districts Growing: 7 Number of Districts Decreasing > 3%: 37 Number of Districts Decreasing > 5%: 31
Section 3e Contact Hour Change from Previous Base Period 40% Contact Hour Change (by District) 2012-13 Base Period to 2014-15 Base Period 30% 20% The median contact hour change is -7.2% 10% 0% -10% -20% -30% -40%
Section 3f Bachelor of Applied Technology (B.A.T.) Program - Dollars Allocated by Weighted Semester Credit Hours 2014-15 Semester Credit Hours Generated Weights *RATE: $ 38.00 B.A.T. Dollars BRAZOSPORT COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015 BAT LIBERAL ARTS 90 90 1.69 $ 5,780 $ 5,780 BAT SCIENCE - - 2.95 $ - $ - BAT BUSINESS ADMINISTRATION 1,165 1,165 1.75 $ 77,473 $ 77,473 BAT TECHNOLOGY 90 90 2.52 $ 8,618 $ 8,618 Total Semester Credit Hours 1,345 1,345 $ 91,871 $ 91,871 MIDLAND COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015 BAT LIBERAL ARTS 198 198 1.69 $ 12,716 $ 12,716 BAT SCIENCE - - 2.95 $ - $ - BAT BUSINESS ADMINISTRATION 1,110 1,110 1.75 $ 73,815 $ 73,815 BAT TECHNOLOGY - - 2.52 $ - $ - Total Semester Credit Hours 1,308 1,308 $ 86,531 $ 86,531 SOUTH TEXAS COLLEGE Non-Tenure SCH TOTAL SCH 2014-15 Weight FY 2014 FY 2015 BAT LIBERAL ARTS 222 222 1.69 $ 14,257 $ 14,257 BAT SCIENCE 1,311 1,311 2.95 $ 146,963 $ 146,963 BAT BUSINESS ADMINISTRATION 4,829 4,829 1.75 $ 321,129 $ 321,129 BAT TECHNOLOGY 318 318 2.52 $ 30,452 $ 30,452 Total Semester Credit Hours 6,680 6,680 $ 512,801 $ 512,801 Total Per Fiscal Year B.A.T.: Total 2014-15 B.A.T.: $ 691,203 $ 691,203 $ 1,382,406 * Rate is based on the General Academic Institutions' Instruction and Operations Support Formula General Revenue Rate.
Section 3g Eligibility Criteria - meet all 3 criteria to be eligible: Above average tax effort (Maintenance and Operations tax rate in top half) Below average tax yield (tax revenue per contact hour in bottom half) Below average district size (annual contact hours below median) Small Institution Supplement Funding Criteria: Eligible Districts receive an additional $250k per fiscal year. Raw Data Analysis of Tax Revenue Determination of Qualification Allocation District Contact Hours 1 Local Tax Income 2 Tax Rate in Pennies per $100 3 Tax Dollars per CH Tax Dollars per Penny Revenue per Penny/CH Effort: Tax Rate at/over $.13126/$100? Result: RPP/CH at/under $.2294? Size: CHs in Bottom Half (< 3.0 million)? Qualify for Supplement? 5442910 1 Alvin Community College 2,340,747 10,131,238 17.48670 4.33 579,368 0.2475 YES YES YES YES 500,000 2 Clarendon College 705,461 442,331 22.19290 0.63 19,931 283 YES YES YES YES 500,000 3 Coastal Bend College 1,949,015 1,812,993 16.80000 0.93 107,916 554 YES YES YES YES 500,000 4 Frank Phillips College 595,998 1,376,499 22.00000 2.31 62,568 0.1050 YES YES YES YES 500,000 5 Howard College 2,308,226 4,388,681 20.49120 1.90 214,174 928 YES YES YES YES 500,000 6 Ranger Junior College 934,361 237,348 24.88000 0.25 9,540 102 YES YES YES YES 500,000 7 Temple Junior College 2,440,513 5,301,008 15.67000 2.17 338,290 0.1386 YES YES YES YES 500,000 8 Vernon College 1,630,121 2,038,823 22.67200 1.25 89,927 552 YES YES YES YES 500,000 9 Western Texas College 1,196,536 4,066,974 15.23000 3.40 267,037 0.2232 YES YES YES YES 500,000 10 Wharton County Junior College 2,925,435 5,171,594 14.44800 1.77 357,945 0.1224 YES YES NO NO - GR for SIS $4,500,000 Median CHs of All 50 Districts 2,813,465 Median TRPP/CH: 0.2527 2014-15 Total 4,500,000 NOTES: 1. Contact hour data is from the Fall 2012, Summer 2012, and Spring 2012 semesters, as reported by THECB. 2. Tax income excludes taxes for General Obligation Bonds and other debt service. Source: FY 2011 AFRs, Exhibit 2 3. Includes only Maintenance and Operation tax rates. Rates taken from FY 2011 AFR Notes LBB Document 2/7/2013
Section 4 Public Community/Junior Colleges Performance Review and Policy Report Highlights Report Savings/ Gain/ Fund Included Reports & Recommendations Page (Cost) (Loss) Type in Introduced Bill Action Required During Session NO RELATED RECOMMENDATIONS Sec4_Agency 704.xlsx 2/7/2013
Section 5 Public Community/Junior Colleges Rider Highlights 2. Appropriation Eligibility. Amend the rider to no longer require the Community Colleges to report their salaries and emoluments for faculty and staff listed by position to the Higher Education Coordinating Board (Board). The information is not used by the Board and the Community Colleges report their faculty salaries in another report to the Board. 3. Approved Special Item Expenditures. Delete the rider since language is included in Approved Elements of Expenditure, Rider 14. 14. Approved Elements of Expenditures and Special Item Expenditures. Amend to include language clarifying the use of funds related to Special Items. Same language was previously included in Approved Elements of Expenditures, Rider 3. New 20. Higher Education Coordinating Board Contingent Appropriations, Formula Funding for Texas Southmost College. New rider referencing a Higher Education Coordinating Board rider making a portion of formula funding for the University of Texas at Brownsville and Texas Southmost College contingent on the institutions providing the LBB with updated semester credit and contact hour data (see Selected Fiscal and Policy Issues Item). New 21. Contingent Appropriations for Public Community and Junior Colleges. New rider making appropriations equal to benefits contributions due and payable for 2012-13 to the state contingent on the community colleges paying their 2012-13 Teacher Retirement System and Optional Retirement Program retirement contributions. 2/7/2013
Section 6 Public Community/Junior Colleges Items not Included in the Recommendations 2014-15 Biennial Total GR & GR- Dedicated All Funds 1. 2012-13 formula funding not recommended in 2014-15 due to contact hour decrease. $ 88,925,950 $ 88,925,950 2. Additional funding for the Community Colleges over the 2012-13 base with a new Student Success Funding Model recommended by the Higher Education Coordinating Board. Funding is included in three different components. $ 237,724,571 $ 237,724,571 1. Core College Operations. $1 million per district for basic operating costs. 2. Ten percent of funding less core operations for Student Success Points. Funding is allocated based on student success points milestones. 3. Ninety percent of funding less core operations based on the number of instructional contact hours each college generates. 3. Alamo Community College - Expand Workforce Academies $ 1,000,000 $ 1,000,000 4. Alamo Community College - Provide Live Fire Training Buildings $ 5,000,000 $ 5,000,000 5. Austin Community College - Virtual College of Texas - Prior Reductions $ 287,500 $ 287,500 6. Dallas County Community College - Small Business Development Center $ 330,380 $ 330,380 7. El Paso County Community College - Texas Completes Initiative $ 439,485 $ 439,485 8. Houston Community College - Southeast College Expansion $ 311,374 $ 311,374 9. Houston Community College - Northwest UT-Tyler Engineering Program $ 3,362,463 $ 3,362,463 10. Houston Community College - Northwest Film Making Program $ 412,236 $ 412,236 11. Laredo Community College - Restore 10% if reduction is made $ 32,238 $ 32,238 Total, Items Not Included in the Recommendations $ 337,826,197 $ 337,826,197 Agency 704 2/7/2013